Levi’s reports 10% ecommerce growth, eyes stronger holiday sales

Levi Strauss & Co. reported a 10% increase in ecommerce revenue in its fiscal third quarter, outpacing growth across its broader direct-to-consumer (DTC) business. DTC revenue, which includes sales through the company’s own stores and ecommerce channels, rose 2% year over year in the retailer’s third quarter ended Aug. 30. Weakness in the U. S.

and Europe weighed on results, although stronger wholesale sales helped lift overall revenue. In Q3, total company revenue increased 4% to $1. 61 billion, up from $1. 54 billion a year earlier.

“We saw strong growth in our international and wholesale businesses, and continued momentum across our lifestyle categories,” said Michelle Gass, president and CEO of Levi Strauss & Co. , in the company’s earnings release.

“While our direct-to-consumer business fell short of our internal expectations, we moved quickly to address the shortfall and are encouraged by the strength we are seeing heading into the holiday season, including in the U. S.” Levi Strauss is No. 148 in the Top 2000 Database.

The market research tool ranks North America’s largest online retailers by their annual ecommerce sales and more.

Levi Strauss web sales by year Levi’s expands ecommerce with AI shopping assistant After another quarter of double-digit ecommerce growth, Levi Strauss is stepping up investments in its online shopping experience, including the launch of an AI shopping assistant in the U. S.

The tool provides styling advice and helps shoppers “discover new styles and build complete outfits,” Gass told analysts on the company’s Q3 earnings call Wednesday (Oct. 7). Early results are encouraging. Shoppers who use the assistant add products to their bags at roughly three times the average rate, according to Gass. The company has also upgraded Levi.

com with “richer storytelling, more dynamic videos and inspirational styling content,” she said. More changes are on the way. Levi Strauss is preparing a broader redesign and platform migration of Levi. com, both slated for a global launch in 2027, she said.

The updated site will offer more personalized shopping experiences, outfit recommendations and what Gass described as “immersive fit navigation.” One goal, she said, is to “convert more consumers into head-to-toe lifestyle shoppers.” Levi’s responds to slower DTC growth Despite ecommerce gains, Levi’s broader DTC business faced challenges during the quarter.

In Q3, DTC revenue increased 8% in Asia and 2% in the Americas. Within the Americas, U. S. DTC revenue fell 1%, while Europe recorded a 2% decline. Global DTC comparable sales were flat. Wholesale, meanwhile, grew 6%. The results underscored the importance of the company’s “DTC first but not DTC-only” strategy, as Gass described it.

In Europe, unusually warm weather kept shoppers away for much of the quarter, she said. In the U. S. , Levi’s back-to-school campaign failed to generate the traffic and demand the company expected. The campaign emphasized loose-fitting denim just as consumer interest was shifting toward low-rise styles, Gass explained.

Levi’s responded by redirecting its marketing toward low-rise fits and other “areas of strong consumer demand.” Gass said it also refreshed its marketing campaign and store merchandising, stepped up digital and social media efforts, and worked to strengthen inventory positions in popular styles. Those efforts are beginning to pay off. U. S.

DTC returned to growth in September, while European trends improved as temperatures cooled. Gass said global DTC was tracking at a mid-single-digit growth rate early in Q4. For the full fiscal year, Levi’s projects high-single-digit DTC growth.

Levi’s expansion beyond denim Levi Strauss is also making progress toward becoming what it calls a “head-to-toe” lifestyle brand. In Q3, categories outside Levi’s core denim bottoms business accounted for roughly half of the company’s revenue growth, Gass said. Tops were a notable contributor, with sales up 7% overall and 10% in women’s tops.

The shift toward higher-end apparel is also gaining momentum. Levi’s premium Blue Tab collection delivered “strong double-digit growth” across men’s and women’s apparel, according to Gass.

Featuring Japanese selvedge denim, the line is expanding into elevated products such as cashmere, silk and tailored pieces, she said, with price points ranging from $200 to $500. Gass also sees room to grow. Levi’s holds less than 1% of the super-premium jeans market, Gass said, despite the brand’s broader leadership in denim.

“And that should at least be commensurate with our market share overall,” she said. Levi’s reinvests tariff refunds ahead of holiday shopping season As it heads into the holiday shopping season, Levi Strauss is puttin